Cross LoC Trade Draws Lukewarm Response

0Shares

SRINAGAR — The cross-LoC trade has received a set back as busi­nessmen are trading in lesser number of items than which have been approved by the two countries. The cumbersome barter trading system has add­ed to the woes of the people.

Launched in October 2008, the trade was considered as the “mother of all confidence-building measures (CBMs) be­tween India and Pakistan.”

However, the trade could not grow beyond the barter system.

Lack of efficient banking and communication facilities has added to the woes of the trad­ers, officials admitted.

“It is unfortunate that one of the most important Confidence Building Measures initiated by the then Prime Ministers of In­dia and Pakistan ten years ago, was dying a slow death due to the absence of proper follow-up action,” Rakesh Gupta, president of Jammu Chamber of Commerce and Industry (JCCI) said. There are two Cross LoC routes — Srinagar-Muzaffarabad route in Kashmir Valley and Poonch-Rawalakote route in Jammu division — which are being used to ferry goods be­tween J&K and Pakistan adminis­tered Kashmir (PaK).

More than 600 traders are registered for the cross LoC trade and 21 items are on the approved export and import list on both routes.

“Only five to six items on the list are now being traded. These include fresh fruits, dry fruits, and herbs. Species are in the export list but not import. Five per cent GST is imposed on the items to be exported and 12 per cent is levied on the imports, which is not matching. Plus if one item is stopped from this side, the other side stops anoth­er. For example, they suspended coconut from this side tempo­rarily and the other side, as a result, stopped sending pulses,” said Pawan Anand, president, Cross-LOC Trade, Chakan Da Bagh, Poonch. Official figures reveal that goods worth Rs 946 crore have been exported to PaK from Jammu and Kashmir through Poonch-Rawlakote road from 2008-09 till August 2018. Similarly, goods worth Rs 826 crore have been imported from PaK through Poonch-Rawlakote road 2008-09 till August 2018.

According to the figures re­leased by the Cross-LoC Trade Union, goods worth Rs 6,700 crore have been traded between the two sides from Srinagar-Mu­zaffarabad road since 2008-09.

“It is a barter trade. There is no banking system. We have been saying for the last ten years that there should be an increase in the number of trad­ing items. Instead, they are de­leting existing items from the list,” said Hilal A Turkey, chair­man Cross-LOC Trade, Uri.

What has complicated the problem is that the trade del­egation from Kashmir has not been allowed to travel to PaK for trade talks. “Business del­egation from PaK has visited this side thrice but we were not allowed. Both the coun­tries had significantly moved forward with regard to the Kartarpur-Amritsar Corridor, no such forward movement was visible in the case of our State,” Gupta said.

Be Part of Quality Journalism

Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast.

ACT NOW
MONTHLYRs 100
YEARLYRs 1000
LIFETIMERs 10000

CLICK FOR DETAILS


Observer News Service

Leave a Reply

Your email address will not be published.

KO SUPPLEMENTS